Private mobile networks challenge new traffic law in the High Court

By Lance Guma
06 November 2006

Zimbabwe’s two private mobile phone companies, Econet and Telecel, have both approached the High Court, challenging a new law that will force them to share international traffic with the government owned Tel One network. The government had given the networks up to November 1 to route their traffic through Tel One’s international gateway even though they have their own gateways. Econet has already issued a statement saying the new law threatens their ability to meet their own foreign currency commitments. And they may be forced to charge their customers in foreign currency for any international calls they make.

State media reports indicate that the two companies are now challenging the constitutionality of the new law and have already filed separate applications. Communications experts have warned that the new set of regulations could cripple the private networks, as they would be forced to share revenue with the state owned Tel One. Only in September Tel One was disconnected from the International Satellite (Intel Sat) link for non-payment of a US$710 000 bill. The latest move is seen as an attempt to harvest foreign currency revenue from the private networks.

The controversial law was gazetted through a statutory instrument in March this year. Concern over government motives is also fuelling a lot of uncertainty in the industry. Government attempts at introducing a bill that would allow them to snoop on private conversations seems to coincide neatly with the latest move.